welcome to "newsroom international." i'm suzanne malveaux. here's what's going on right now. president obama speaks to the nation that is teetering on the edge of a financial crisis. about an hour from now the president will talk about his efforts to avoid the so-called fiscal cliff. it would affect 90% of americans. we're going to bring you the

president's remarks live. we're also going to break down what's at stake for the economy as well as your personal finances. zimplt president obama confronting a looming financial. they have 53 days to come up with a solution to avoid going over the so-called fiscal cliff. what are we talking about? it's a combination of automatic spending cuts to the tune of $1.2 trillion over the next. our chief white house correspondent jessica yellin will talk about this, and you bring up a very good point now. during the second term campaign, but she's been pretty clear, right, on his stance regarding the fiscal cliff and his obama line. tell us what it is. >> that's right, suzanne. he has laid out that his negotiating terms include the following. he is willing to compromise and

raise some revenue by altering some parts of medicare and medicaid on entitlement reforms. he is also insistent that some revenue be raised by changing the tax rates. you know, those bush tax cuts expire at the end of this year, and he has said that the wealthiest americans must pay more. we've heard it on the campaign trail over and over. one thing he has hit is that those who make $250,000 and more must pay more. maybe he'll move that number. who knows. he did say quite clearly the white house has that they would veto any bill that does not include a tax increase for the wealthiest americans, suzanne. >> jessica, we heard boehner, john boehner, actually within the last 30 minutes or so talking about that there are ways to raise revenue and spending cuts as well in a all options are on the table. do you think the white house sees that as some sort of opening, if you will, to

negotiations? >> i think both sides are hopeful there is wiggle room for negotiations. everybody knows that something has to get done because the economy will take such a serious hit if it doesn't. here is where i see the battle line right now. republicans on capitol hill tell me they are willing to raise revenue. that's a big change. they are willing to raise revenue, but without a change in the tax rates. the president has said that the highest earning americans have to pay more. congressional republicans saying no change to the tax rates. that's a big difference of opinion. they'll have to find a way to bridge that divide. beyond that, they're willing to compromise on entitlements. they're willing to find cuts, so there does seem to be room for compromise. there's also a willingness to get something done and avoid the hit to the economy. >> something else that struck us when we were looking to speaker boehner was the one thing he said. he said, okay, i'm willing to work with the president, but then he also seemed to put the

onus, the negotiations, on the president, and he said it really was the president's turn to lead. i want you to listen to this. >> this was an opportunity for the president to lead. i think it's important for us to come to an agreement with the president, but this is his opportunity to lead. on an issue this big, the president has to lead. i think members on both sides of the aisle want to resolve this issue. the president is going to have to lead. >> by our count, that was four times, i think, and it ranged from tax reform to immigration reform as well. >> doesn't he have a responsibility within the gop to move the needle here? >> this is a bit of a street edgic political tug-of-war. obviously, the president is the leader of the nation. he has an obligation to lead, but he also has a bit of the political edge now because he has won re-election on the promise that he will raise these

taxes. there's some push-pull going on the politics. one thing i would find out -- i said this before, suzanne, the one partner in all of this who has been absent that both sides want to lead is the business community. wall street and ceos of major corporations step up and speak publicly to say we want this to get done. they're willing to see a tax increase if that's necessary. if that's how they feel, they want them to say it publicly, suzanne. >> jessica, good to see you. thank you. >> we're throwing around this term, fiscal cliff, but really it's a manmade crisis that's going to affect everybody, all our finances. economists say the combination of these massive spending cuts and the tax increases could actually push the country back into a recession. ali velshi is in new york to talk about what it means for all of us, and, first of all, ali, if you could, break down the scenario of what this fiscal

cliff entails. >> it's the pain of my existence that everything has everything going is credit default swaps and fiscal cliff. it's a cliff that if we go over, growth drops very dramatically. a lot of money is paid out of the economy, and the economy goes from 2% growth right now where it is to about negative 1.5% growth. that would be a recession. as that car gets over that cliff, there will be an average kras, according to the congressional budget office of $3,500 per household in tax increases. this is the spending cuts. this is the bush tax cuts going away. this is the alternative minimum tax patch going away, the payroll tax holidays. $3,500 per household increase. $109 billion in automatic across the board spending cuts will take effect. half of them will be in defense. half of them will be in nondefense. the congressional budget office, the nonpart sflan body says

millions of jobs will be lost, a million next year alone. unemployment will jump to % next year, and, of course, we'll be back in that recession. now, in fairness, suzanne, most thinking people don't think we'll get there, but most thinking people thought we would get a resolution to the debt limit earlier than we did too, so faith in washington doing the right thing is a little bit low, but it does sound like from the conversation you just had with jessica that everybody is taking it quite seriously. >> talk specifically about the tax cuts that are going to expire. how much are most americans probably going to end up paying in increased taxes? >> well, it all depends because the reason this is a fiscal cliff is it's not a plan. ates bunch of stuff that came together at the same time that when it all expires at the end of the year will have this net effect of making people pay more money. so it's hard to tell because president obama wants the tax cuts to expire for everybody but only for the rich, so everybody else gets an extension. the republicans say everybody has to get it, so we're fighting

over the 2% highest income earners who will see an increase in their taxes, but basically tax rates will go from a low of 10% to a high of 36% right now to a new system where the lowest would be 15%, and the highest would be 39%, which, by the way, is where they were president obama likes to point out, when bill clinton was president. >> ali, thank you. we'll be watching closely. a rare public show of emotion from president obama. he was moved to tears when he thanked his campaign staff the day after he was re-elected. watch. >> you guys -- think the work that i'm doing is important. i'm really proud of that. i'm really proud of all of you, and -- and -- [ applause ]

>> here's more of what's ahead on cnn international. thousands escape the violence in syria, and flood across the border into neighboring turkey setting off another humanitarian crisis. and with the election faebl over, the american people are ready for specifics on how washington plans to avoid the so-called fiscal cliff. we're going to hear from the president next hour with his plan. ple making stuff. companies have to invest in making things. infrastructure, construction, production. we need it now more than ever. chevron's putting more than $8 billion dollars back in the u.s. economy this year. in pipes, cement, steel, jobs, energy. we need to get the wheels turning. i'm p. making real things... for real. ...that make a real difference. ♪ out for drinks, eats. i have very well fitting dentures. i like to eat a lot of fruits. love them all. the seal i get with the super poligrip free

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a difference in the lives of others. let's get started at capella.edu shopping fdon't wait. coverage? open enrollment ends december 7th. now's the time to take action. call unitedhealthcare today. numbers are astounding. in just 24 hours more than 11,000 people have crossed the board frer syria into either turkey or jordan. that is 11,000 people. they're trying to escape from

scenes like this one. >> rebels in a border town setting off rockets to fight government forces. so far the war on syria has left more than 35,000 people dead. first of all, ivan, you look at these pictures. we saw one of these battles that are taking place in syria. the fighting seems to be spilling across the border now. if those rebels are successful in maintaining the control of the border towns, what does that mean in temz of where this civil war goes? >> if gives an open life lien out to turkey, which is supported the armed and unarmed syrian opposition. it gives them easy access to turkish hospitals and getting their members back and forth to get refugees out to escape syrian regime offensives. for the past six months the

rebels have bit by bit been making cheese of syrian government's control of this long border between syria and turkey and grabbing border towns and crossing pounds. what we've seen over the course of the last 48 hours is the syrian side of this border town -- with the rebels claiming victory on friday. we can't confirm that. also pushing more than 8,000 -- pushing the fighting into syria just that one place, and also gunfire right across the border, suzanne, that has wounded at least seven turkish citizens on the turk irk side of the border. >> so, ivan, how does turkey deal with this? clearly they are inundated with refugees and now you have a fighting that has spilled over from its neighbor. >> it's not the first time the fighting has spilled over in recent months. several turkish citizens, at

least five were killed by syrian artillery strikes in another similar border village, and now whenever syrian troops fire into turkey, the troops fire back with their artillery. that's one measure they've taken. but the refugee crisis is much more troublesome because you now have officially at least 110 syrian refugees in refugee camps in turkey. tens of thousands of additional refugees living outside of camps, and it is pushing the turks to the limit. at some points they've been forced to close the border leaving thousands of syrians in dire conditions waiting for camps to be built here in turkey waiting at the fence so that the refugees can come in. so it's a very difficult situation, and it's really starting to scare turks who are afraid they could get dragged into a war with their syrian neighbors, suzanne. >> it is a scary situation on both sides. thank you very much, ivan. iran now taking a pot shot at an american drone. the question now is it an act of

war? we're going to get the latest on this dangerous stand-off.

a defiant reaction from iran

on its attack against an unmanned u.s. drone. the incident happened last thursday in the persian gulf. the pentagon says two iranian fighter jets fired on the u.s. predator surveillance drone. the drone was not hit and returned to its base. now iranian news agency quotes a top iranian military official is saying his country took decisive action against the drone. another top iranian general tells the news agency "if any foreign planes try to enter our country's space, our armed forces will confront it." the pentagon insists the drone was in international airspace east of kuwait. now, the pentagon spokesperson asked -- was asked if this attack amounts to an act of war. here's what he said. >> i'm not going to get into legal labels. the -- we have a wide range to protect our assets and the forces in the region, and we'll do so when necessary. we have communicated to the iranians that we will continue

to conduct surveillance flights over international waters over the arabian gulf insistent with longstanding practice. >> barbara starr broke the story, and she joins us live from the pentagon. barbara, we know last december a drone went into iranian airspace, crashed. the pentagon says this predator drone never entered iranian territory. you have the details. what do we know? >> well, suzanne, what the pentagon is saying was the drone was 16 miles off the coast of iran. the international limit, of course, is 12 miles. close but not that close. they are insistent that this was a routine surveillance mission. when these two su-25 jets came up and started fire telling drone. in fact, operators turned the drone away so it would leave this area and the iranian jets pursued it.

>> there's a lot of concern that this is an indication perhaps that these particular forces are looking for trouble and not under the direct control of the forces inside of iran. suzanne. >> so you have aggressive behavior on that part, and this has not been the first time -- back in january you saw these iranian boats approaching u.s. military ships at the strait of hormuz in the persian gulf. a lot of folks thought that perhaps iran is trying to mess with the crucial oil shipping lanes in the gulf there. what is the concern for the pentagon now? >> well, you know, that's exactly why these are out there conducting this surveillance. it's absolutely critical. >> to keep the oil shipping lanes open free, no problems on the waters.

our concern is that iran, if it takes a military action, would begin in the gulf by mining those waters, so the drones are helpful in keeping a wide surveillance from above, watching the waters making sure nobody is putting out any mines. it's all about the oil shipping lanes and the economy in this region. nobody wants to see a shooting war. nobody wants to see any instability in the region. >> all right. barbara, thank you for breaking the story, and obviously, giving us the latest details. appreciate it. this guy, he literally broke his back serving his country. well, now he is helping other vets put their lives back together. americans are always ready to work hard for a better future.

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and tomorrow we will up it yet again. >> this weekend americans celebrate veterans day paying trib oot to the men and women who served this country. one national guard captain is showing his appreciation to fellow comrades all year long by finding and returning lost

purple heart pe medals to the heroes who earned them on the frontlines. take a look. ♪ >> ralph sacrificed more than just his service to his country. he sacrificed his blood. >> my dad was the -- >> for that sacrifice he was awarded our nation's oldest medal, the purple heart. >> he lost his right leg fighting in france, and he received a purple heart for that. we had it for many years in my home where i grew up. >> unbeknownst to us it was lost in a move later in his life. >> i found his medal on craig's list. this has been a calling of mine for about the last three years. i locate lost or stolen medals. these are all the purple hearts that i'm currently working.

some i've located the families. some i haven't. i do these on my own time. i don't consider it a hobby. it's more of a calling and an honor. a lot of times they put it in a shoebox under the bed, and it gets misplaced, and they lose it. ♪ >> i myself have a purple heart. it hangs on the wall in my mother's home, and i would hope that one day if my medal was lost, someone would do the seam thing for me and my family. >> it is true an honor to bring this private's purple heart home to his family, and i humbled by his sacrifice. it is a great honor to bring home his purple heart. thank you very much. ♪ >> the medal means a lot to me, especially, and to our family. >> that's it. that's the purple heart. >> i remember seeing it and the girls going out to him. my mother kept it in a certain spot in the dining room. >> to see how appreciative they were is a tremendous feeling.

>> i'm glad it is home to where it belongs, and i'll move on to the next medal. >> don't miss ac 360's veterans day special. the battlefield at home, it airs this saturday night at 8:00 p.m. eastern. president obama just won four more years in office, and his to do list already, as you can imagine, jam packed, especially when it comes to national security. we're going to take a look at the global hot spots and potential threats that our country is facing right now. [ male announcer ] when it comes to the financial obstacles

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president obama has four more years to tackle some of the most complex world challenges, like iran's nuclear ambitions before israel strikes. traying so stop the bloody civil war in syria, that is trying to kill people, and dealing with terrorism through deadly drone strikes. how does it make headway? cnn reporter ellise lav it and susan kelli, they're our experts on these topics. together this power team wrote a column on cnn.com security clearance blog about the president's world of challenges. great to see you guys all at once. let's tackle some of this. i want to start with you. let's talk syria. more than 32,000 have died in nearly the two years of fighting in your article you say some official advisory -- might take a muscular approach to the crisis. what does that look like?

>> i think, first of all, you could see a morrow bust effort to -- >> they realize that these islamists are all the ones with the guns and the money and, therefore, they would have the power in the future of syria, so i think they maied might aid them a little bit more. i also think that there could be support for no fly zone. turkey has said that it could put patriot missile on the border with syria because of all these skirmishes, so i think if turkey were to take the lead here the u.s. could support eventually a no fly zone to protect some of the syrian armed rebels.

they are actually doing the work to prepare. >> you talk about iran. today we justice learned that iran's military shot down a u.s. spy zone last week, and throughout the campaign the israeli government was criticized for not pressing them more on nuclear ambitions. what is the president -- what are the president's options here? >> i think, suzanne, even his former mideast advisor said yesterday that the 2013 is going to be a decisive year for iran. if you look at the advancement of iran's nuclear program, if you look at the sanctions that are hurting iran, and you also look at israel's threats to launch military action, these are all signs that president obama has to really work with iran for a deal. there's been some talk about possibly the u.s. and iran holding talks in the next couple of months. it really has to make sure that iran is willing to strike a deal to suspend its nuclear iranian enrichment medical record to get

this government. >> okay. jill, i want to bring you in here. you were the moscow bureau chief for many, many years here. you know all the things about russia here. the president was re-elected and you write that the russian president vladimir putin congratulated him on a phone call, but you say it doesn't mean that the relations between these two are so smooth. you write that moscow and washington are still at odds over how to end the carnage if syria and russia still considers the u.s. plans for a european missile defense system a threat. what is the main problem with this, and how do they overcome that defense system here to find some sort of breakthrough? >> well, you know, remember that conversation between president obama and dmitri medvedev who was the president about a year ago in which he said give me some slack. in other words, after the election i'll be able to do more, and he, indeed, asks that mr. medvedev take that message back to vladimir, which mr. medvedev did.

the whole idea was -- really one of the sticking points is missile defense saying that u.s. plan for missile defense in europe. the russians are vihamently opposed to it still, and they consider it a threat. many of the people we're speaking to may need more clarity on the u.s. side about what the intentions are, might help to kind of break free this log jam because actually both countries could theoretically work together on that. the other thing would be arms control. maybe they could get down to 1,000 weapons and their delivery vehicles. that is a possibility. >> how does the obama

administration that's now relying heavily on drones to take out al qaeda leadership, particularly in pakistan and yemen, how do they deal with this threat? >> i don't think there's going to be an education that the drone program will slow down. it's going to be an effective tool despite how you feel about it, and targeting that top tier of leadership among aqap and yemen is going to be really important. now the critical question is going to be the bombmaker. you'll remember, suzanne, back in may this very highly skilled bomb maker who works for aqap developed a bm that was almost undetectable, and it's being used to bring down a u.s. airliner. here's the dangerous part of this. how many other people has that bombmaker trained? that's what they're trying to find out right now, and that's going to prop determine a lot of how the u.s. proceeds in the future against this group. aqim is another affiliate. they're located in north africa. it's another top concern for the obama administration in term two because they also are very active in targeting people. the difference between aqap and

aqim, aqim is more of a local organization. they don't really target americans where they live, but they're conducting a really high number of kidnappings, ransoms are way up, and they're making a lot of money to continue to plot what they're plotting. >> all right. suzanne, ellise, jill, thank you to all of you. a powerful team there. appreciatele ladies in the house. good work as always. smart, intelligent conversation. thank you. >> reminder, president obama going to speak to the nation. it is now teetering on the edge of a potential financial crisis. going to bring it to you as soon as it starts in about 30 minutes or so. ct. the writer's desktop and the coordinator's phone are working on a joke with local color. the secure cloud just received a revised intro from the strategist's tablet. and while i make my way into the venue, the candidate will be rehearsing off of his phone. [ candidate ] and thanks to every young face i see out there. [ woman ] his phone is one of his biggest supporters. [ female announcer ] with cisco at the center...

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chevy runs deep. sflee started his career as an oil executive. now he will be the new amp bishop of canter bury. appointed to become the spiritual head of the 80 million anglecans. he is an opponent of gay marriage, but he said he would listen attentively to the concerns of the gay community. he is also a big supporter of female archbishops. >> this is a time for optimism and for faith in the church. many ten days or so the general sinod. i will be voting in favor of women for archbishops and join my voice to many others in

urging the sinod to go forward with this change. >> well, he will be enthroned as archbishop of canter bury on march 21st. tomorrow people around the world will celebrate malala day. she is the 15-year-old pakistani girl who was shot and critically injured by taliban militants simply for promoting a girl's right to education. malala is recovering in a hospital in birmingham, england. she still needs to have surgery on her skill and her jaw, but her dad says she is making progress. good for her. the navy is now reprimanding seven members of the elite s.e.a.l. team 6 for working on a video game. a navy official says the s.e.a.l.'s were paid consultant forces the medal of honor war fighting video game. they are charged with dereliction of duty for revealing classified material and showing their official combat gear, which is not allowed. they're going to lose pay for two months and no longer be

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in a country where tea is deeply rooted in the culture, does india really stand a chance? we go to mumbai to find out. ♪ >> reporter: most people in india wake up to this every morning, a cup of chai, steaming, sweet, and milky. >> i think the lines are already starting. people are calling. >> there is a buzz. >> yeah, there is a buzz. >> reporter: one man believes that's changing. howard schultz, founder and ceo of the world's largest coffee chain, has partnered with the

tata group to open starbucks in india. ♪ the first one launched in mumbai in october. >> there's a tremendous amount of coffee that's being sold and served in this market. we will sell very high quality tea and chai tea in our stores, but i suspect that we're going to be extremely well here. >> though india's domestic coffee consumption is increasing on an annual basis, it's still not very much. in india the per capita consumption of coffee is 82 grams. that's less than what's in this little packet. to put it in context, in the united states it's four kilos, and that's all of this. but in india coffee isn't what draws people to a cafe. >> these cafes are a meeting place where people go to meet. coffee is incidental. sometimes people ask this question, but in india there isn't a coffee culture. you could be selling lemonade in starbucks in india, and they

will still come. >> modern, clean, as spirational. cafes are particularly popular with india's youth. >> in mumbai especially because there's so much -- there's no place to hang out, you know? >> economic growth means more people have more spending power. they're travel ago broad, developing new tastes and adopting lifestyles making the cafe culture a part of india's social fabric. according to retail consultants techno fact, total retail is expected to grow from 13% to 14% in the next five years to $410 million. the current market leader, a dmesic brand cafe coffee day has more than 1,000 stores across india. it says it plans to get even bigger. >> we are looking to be a 2,000 cafe brand by the end of 2014. that will mean that roughly we need to add one cafe every working day, and we're working towards that. >> reporter: international brands too are pursuing this

market of a billion people. costa is here, dunkin' donuts entered in september. the latest entry tata starbucks. >> i think the offering of the starbucks in the store is -- we open newspapers and television channels. you see or read or hear about the sated things that happen in india. this is about the bright side of india. this is about the expanding market here. >> reporter: a market that's still predominantly focused on tea. india is one of the largest producers and consumers of tea in the world, and there's a campaign brewing to declare it the country's national drink. the new cafes have a stream of customers in this humble tea store where he sells 1,000 cups a day for 5 cents each. he says it's not the price. tea is a habit in india. plus, it just tastes better than coffee.

public awareness campaign in south australia certainly getting people's attention. check it out. a closer look. this is a wrecked car, but it is actually 17 painted men and women stacked on top of each other. it is part of awareness campaign to get drivers to slow down. the underlying message is that when cars crash, it is really people who pay the price. pretty cool. well, with the election behind him, of course, president getting down to business. he has less than two months to find a compromise with this republican counterpart before the country goes off the fiscal cliff. of course, our taxes likely to go up. we'll hear from the president live in just a few moments. t. i tried weight loss plans... but their shakes aren't always made for people with diabetes. that's why there's glucerna hunger smart shakes. they have carb steady, with carbs that digest slowly to help minimize blood sugar spikes.

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common side effects include nausea, trouble sleeping and unusual dreams. it helps to have people around you... they say, you're much bigger than this. and you are. [ male announcer ] ask your doctor if chantix is right for you. it's a financial disaster in the making that could send the u.s. economy plunging back into recession. we're talking about the so-called fiscal cliff. it is a combination of automatic

spending cuts to the tune of $1.2 trillion over the next ten years and tax increases for 90% of americans. we're going to hear from the president shortly about the economy and the fiscal cliff. he is scheduled to speak at 1:05 eastern. we're going bring you the remarks live, of course, but right now correspondents here for pregame analysis. we've got ali velshi and christine romans in the house, our money team. we have wolf blitzer and chief political analyst claire borger in washington, and jessica yellin. she is actually at the white house making her way into the east room where she is going to be covering that statement. wolf, i want to start off with you. this event in the east room, there will be middle class foilgs behind him. these are the folks that would be impacted by a tax increase. he is notts taking any questions. they already won. this is not a campaign event here. if this is really about governing, why do you think we are seeing this kind of setup

here, which really looks more like a rally and not necessarily a press conference. >> it's going to be really intense over the next six, seven yankees because the deadline is december 31st. the economics of the situation will deteriorate. there will be this fiscal cliff situation that will unfold. you saw john boehner out this morning. he was in a news conference. he was laying out his opening position in general terms. the president presumably will do the same thing with his statement today. they are respective aids -- the white house chief of staff, the treasury secretary, there will be all the leading republicans and democrats on the hill, and this is going to be really intense, but the stakes are enormous. if they don't do anything, as you point out, suzanne, tax

rates will go up for everyone, and the sequestration will go forward. these automatic spending cuts for domestic programs and for defense spending. they will go into effect as well. it's a big issue. >> gloria, i want to bring you into the conversation. we're looking at pictures obviously in the east room getting set up there for this statement. it is not a press conference. it is simply going to be a statement here. i guess they'll do the tough negotiating behind the scenes, if you will, and not their hands either way opinionically, but we did hear from a speaker john boehner with just within the last hour or so making his case for why it is that wealthy americans should not have their taxes go up. here's what he said. >> the number one issue is about the economy and jobs. everyone wants to get our economy moving again. everyone wants to get more americans back to work again. raising tax rates will slow down our ability to create the jobs that everyone says they want.

let me know here. he says that everything on the revenue side and on the spending side has to be looked at, so is that a window? is he opening up an opportunity here for compromise and for negotiations? >> sure. i think he is. i mean, these two men have had a grand bargain almost once before, and i think that what john boehner is saying is, look, let's not rule anything out except what he is saying is that the top rate cannot go above 35%. for example, today chuck schumer, senator from new york, floated an idea in the "new york times" that said, well, maybe we could keep that rate at 35% if in tax reform we cap deductions for the wealthy so that we knew

again, suzanne, i think each side is set on the tax rate, but i am seeing wiggle room early on, and that's because they know they have to get this done. >> got to get it done. let's bring in christine romans. christine, explain to us why it's so important that they've got to get this thing done what is this fiscal cliff that folks are talking about? >> well, it's a lot of different things that are, frankly, staggered over the year, but it begins at the beginning part of the year with, you know, an expiration of the bush tax cuts. that means taxes rise for everyone. it's spending cuts. the so-called see quester. that's going to be 8% to 10% off of the budget of just about every agency you can imagine. cdc, border patrol. every agency is trying to figure out what it would mean for them. the alternative minimum tax, the payroll tax holiday. one thing after another. just about every kind of financial thing that affects you and your family. all kinds of tax breaks that expire or get scaled back to the levels of four or five years

ago. you would feel it, and you start to feel it right away. you're going to hear, suzanne, some people curiously on the left don't who about. it's a cliff like that. it's a slope. the thing is that the rest of the world, investors, people need certainty. whetherates slope or fiscal step or a fiscal, you know, casm. whatever it is, it's not good. >> this is one of my favorite subjects, actually. the big picture. when you look at these pictures, right, that we saw this week out of greece where you have riots in the streets over these austerity measures for them to get their act in order, to get the loan money, to see the markets tanking over the last two days or so, how much does it really matter, ali, what the president does and what his policies are when it comes to our economy or is it the rest of the world that's calling the shots? >> this is a really good

question because we are not greek. a lot of people say we're headed towards greece. we're not headed towards greece, but i'll till what happens, if we let -- if we go over the fiscal cliff. let's be clear, most people don't think we will. the danger is if we do, then all of a sudden you plunk growth from plus 2% right now, gdp growth, to minus 1.5%, puts you in a recession, but then you're in a hole that's hard to get out of. the bet is that will stimulate economic growth. that is if you let some of the -- if you have lower taxes. that's not necessarily the case. the problem greece has right now is if you are a 25-year-old greek citizen, it's not clear that in five years or ten years things will be better because you've got yourself into a rut. the danger is that we're toying with something that is so potentially catastrophic. it's not that we'll likely get there. it's that we're toying with it, and that makes investors around the world very nervous about the area.

>> everyone is watching what is taking place here. i want to welcome our international audience, our viewers from around the world, as well as in this country here. we are getting our pregame analysis to cover the things that we anticipate the president will be talking about, the fiscal cliff, so in washington we have wolf blitzer and gloria bo borger inside. we have jessica yellin, and we've also got our financial team christine romans and ali velshi as well. jessica, i want you to start off here. you're in the room. i want you to kind of set the mood, set the scene for us, if you will. this is a president now who has a little bit of wind, if you will, in his sails, and he is moving forward to a second term. how confident is he that we're going to avoid this fiscal cliff? >> hi, suzanne.

well, they are determined to insure that we do. they do not want to see another hit to the economy like they saw at the beginning of the president's first term. the president will be making i should point out what will be his first remarks from the white house after his re-election when he comes out to the podium behind me. my guidance now is that the remarks will be rather brief. i'm told they look to be about five to seven minutes in length. we should not expect him to make any new proposals regarding the fiscal cliff, regarding his debt proposals, but, rather, to restate the principles we already know that this white house has embraced, which is a no increase -- no extension of the bush tax cuts for those making $250,000 or more, a willingness to negotiate on other issues, including some entitlements, medicare, medicaid, and also a general spirit of compromise as long as both sides are willing to get there. you know, they talk about the

balanced approach. as you point out, the president does have the wind in his sails because he campaigned on these ishsz, and they feel they have some leverage here. a point about who will be here who will be stick arounded by what they call middle class americans, who share his views, and you asked about the mood a little something "o a lighter note. i have never seen this before, maybe it's because it's the first statement after getting reelected, but they have a band playing music outside to welcome everybody in. >> it is kind of unusual, jessica, let's say. tell us a little about the invitation. i understand the president has invited members of congress to come to the white house next week and to start working on some of these issues. >> it's my understanding she has invited bipartisan leaders of congress, democrat and republican leaders in both the senate and the house of representatives to come and talk about getting this deal done. i don't have a date. i don't know when that will be. they are trying to move quickly. as you know, the president has

announced he will be going to asia for a trip overseas, and then quickly on to thanksgiving. they have to move fast. so do i. i think he is coming. >> all right. well, we'll let you sit down. we'll get wolf and gloria to talk about it. as soon as the president goes to the podium, of course, we'll take them live, but i want to ask you guys here. we've seen a different side to the president lately. just over the last couple of days. it is a much more emotional president. we have even seen him crying as he talked to his campaign staffers. if we have some time, let's play that clip real quick. >> you guys have done means that the work that i'm doing is important. i'm really proud of that. i'm really proud of all of you, and -- [ applause ]

wolf, what do you make of this? in all my years of covering obama, i have never seen any kind of -- anything that was close to that kind of expression and emotion here. do you think that he is allowing himself now that he is going to be a second termer to be more vulnerable, more expressive? >> yeah. it's a nice touch to see. you know, normally very, very cool. in this case he got very emotional, totally understandable. he has been re-elected president of the united states for another four years. just before the end when there were a couple of other moments we did see him get a little bitty-eyed. there was one event, his final event that, he got a little misty-eyed. i remember four years ago, suzanne, you were there when he lost his grandmother. he cried. it's not the first time, but it's very rare. he was channelling in a little bit of john boehner, who is very emotional all the time. we have seen him weeping on several occasions over the years. gets very, very emotional, which as i say totally understandable.

he is going to have to change some of his sort of outreach, if you will, if he is going to be successful in these next four years that he is looking at to his presidential legacy. he is going to have to reach out to members of congress, invite them over, schmooze with them, democrats and republicans. is he is going to have to start making phone calls. he is going have to have to do what bill clinton did, become much more accessible. this goes against the grain of what he did in the first four years. he is a relatively private guy when he plays golf. he plays with his buddies. we hangs out at night, he wants to hang out, totally understandable, with his wife and two daughters. he is going it have to get a little more open. if is he going to want these last four years and every day in these last four years, these second four years will be critical if he is going to succeed in having a very, very successful second term. he has to change his strategy a little bit? >> i think what is telling, wolf, is the fact that you see him tear up. it's been twice in a week or so that this is -- we're getting

twot-minute warning here, we are told. the president is going to start speaking in about two minutes or so, and you just heard that from the announcement there. i thought it was interesting, wolf. the fact that this has become a front page news story, if you will, that this is a viral video, that the american people are so hungry to see the president emotional and passionate and really expressing, i think, what so many people were looking for and looking from him over the last four years, and now a new sense of the president being able to do just that. i want to bring in ali and christine to talk a little bit about what we expect to hear from the president when it comes to the bush era tax cuts that will expire and the importance here -- the important distinction the president is going to make in terms of who he believes should be taxed and who he believes should not be taxed. you can't afford to at this time. ali, you want to jump in here? >> huh for asking me the immediate question because that's the one piece of information that the president has been remarkably consistent upon through this fiscal cliff discussion. he feels that 98% of households should not have their taxes

increased and those at the highest end should. >> all right. we're going to have to cut you there. the president taking to the podium here in the east room of the white house. let's listen in. >> thank you. thank you, everybody. thank you. thank you so much. thank you. thank you very much. everybody, please have a seat. thank you. good afternoon, everybody. now that those of us on the campaign trail have had a chance to get a little sleep, it's time to get back to work. there is plenty of work to do. as i said on tuesday night, the american people voted for action.

not politics as usual. you elected us to focus on your jobs, not ours. in that spirit i've invited leaders of both parties to the white house next week so we can start to build consensus around the challenges that we can only solve together. i also intend to bring in labor and civic leaders from all across the country here to washington to get their ideas and input as well. our focus has to be jobs and growth. that's the focus of the plan that i talked about during the campaign. it's a plan to reward small businesses and manufacturers to create jobs here, not overseas. it's a time to give people the chance to get the education and training that businesses are looking for right now. it's a plan to make sure this country is a global leader in research and technology and

clean energy which will attract new companies and high wage jobs to america. it's a plan to put folks back to work, including our veterans. rebuilding our roads and bridges and infrastructure, and it's a plan to reduce our deficit in a balanced and responsible way. our work is made that much more urgent because at the end of the year we face a series of deadlines that will force us to make major decisions about how to pay our deficit down. decision that is will have a huge impact on the economy and the middle class both now and in the future. last year i worked with democrats and republicans to cut $1 trillion wovrt of spending that we just couldn't afford. i intend to work with both parties to do more. that includes making reforms that will bring down the cost of health care so we can strengthen programs like medicaid and medicare for the long haul. like i've said before, we can't

just cut our way to prosperity. if we're serious about reducing the deficit, we have to combine spending cuts with revenue. that means asking the wealthiest americans to pay a little more in taxes. that's how we did it in the 1990s when bill clinton was president. that's how we can reduce the deficit while still making the investments we need to build a strong middle class and a strong economy. that's the only way we can still afford to train our workers, or help our kids pay for college or make sure that good jobs and clean energy or high-tech manufacturing don't end up in countries like china. now, already i've put forward a detailed plan that allows us to make these investments while reducing our deficit by $4 trillion over the next decade.

i want to be clear. i'm not wedded to every detail of my plan. i'm open to compromise. i'm open to new ideas. i refuse to accept any approach that isn't balanced. i'm not going to ask students and seniors and middle class families to pay down the entire deficit while people like me making over $250,000 aren't asked to pay a dime more in taxes. i'm not going to do that. i just want to point out this was a central question during the mrekz. it was debated over and over again. on tuesday night we found out that the majority of americans agree with my approach that includes democrats,

independents, and a lot of republicans across the country, as well as independent economists and budget experts. that's how you reduce the deficit. with a balanced approach. our job now is to get a majority in congress to reflect the will of the american people. i believe we can get that majority. i was encouraged to hear speaker boehner agree that tax revenue has to be part of this equation, so i look forward to hearing his ideas when i see him next week. i want to make one final point that every american needs to hear. right now -- >> by the end of the year everybody's taxes will automatically go up on january 1st. everybody's. including the 98% of americans who make less than $250,000 a year. that makes no sense. it would be bad for the economy and would hit families that are

already struggling to make ends meet. unfortunately, we shouldn't need long negotiations or drama to solve that part of the problem. while there may be disagreement in congress over whether or not to raise taxes on folks making over $250,000 a year, nobody, not republicans, not democrats, want taxes to go up for folks making under $250,000 a year. let's not wait. even as we're negotiating a broader deficit reduction package, let's extend the middle class tax cuts right now. let's do that right now. that one step -- that one step would give millions of families, 98% of americans and 97% of small businesses the certainties they need going into the new

year. it would immediately take a huge chunk of the economic uncertainty off the table, and that radio lead to new jobs and faster growth. businesses will know that consumers, they're not going to see a big tax increase. they'll know that. a lot of the uncertainty that you are reading about, that will be removed. in fact, the senate has already passed a bill doing exactly this, so all we need is action from the house. i've got the pen. they just sign the bill right away. i'm ready to do it. i'm ready to do it. now, the american people understand that we're going to have differences and disagreements in the months to come. they get that. on tuesday they said loud and clear that they won't tolerate dysfunction, they won't tolerate politicians who view compromise

as a dirty word. not when so many americans are still out of work, not when so many families and small business owners are still struggling to pay the bills, but what the american people are looking for is cooperation. they're looking for consensus. they're looking for commonsense. most of all they want action, and i expect to find willing partners in both parties to make that happen. let's get to work. thank you very much. thank you. we're watching president obama in the east room there. really no more than five minutes or so outlining his plan. didn't get any new details on it, but a couple of things that struck me that stood out. want to bring in our panel, our correspondents for some post-game analysis. wolf blitzer and gloria borger out of washington, our chief correspondent jessica yellin, as soon as she gets set up there in the east room, and our economic experts ali velshi, and

christine romans here. i want to start off with you here. two things that stood out. one of the things he said was that something that could be done right away that there was a sense of urgency here is that you could go ahead and extend the middle class tax cuts right now. that is what the president said. we heard from speaker boehner who said, look, nothing is going to get done right away. let's wait until 2013. nothing is going to happen in the lame-duck congress. it seems to me it's that he has taken on the speaker right away that we need to get something done in the next eight weeks. >> the presidents and democrats have long said extend the tax cuts for the middle class for those individuals earning under $200,000 a year. families earning under $250,000 a yees, extend those bush tax cuts immediately. and then worry about the wealthiest americans later. the problem with that, and the democrats and -- they have passed that in the past. the republicans, especially in the house of representatives see that as leverage because they don't want tax rates to go up on

everyone, including the wealthiest americans. they say that that will undermine economic recovery. you don't raise taxes during tough economic times. he is ready to open up to new ideas. what i did say, and i wrote these words down precisely because i think it's significant. he says he wants the wealthiest americans to pay a little more in taxes. he didn't say flatly -- i think this potentially could be significant. he didn't say flatly i want to see their tax rates go up from 35%, which is right now 39.6%, which was the tax rate during the clinton administration. it's deductions for the wealthiest. if they can find a way that wealthy americans would pay more by eliminating some of the deductions and exemptions, the

loophole that is they're eligible for without necessarily raising that 35% tax rate, that may be an opening for a compromise between boehner on the republicans on one side and the president and the democrats on another side. i don't know if he will have the votes in the house of representatives to get that through because so many of these republicans in the house especially, they have pledged to grover norquist that they would never do that under any circumstances, so he may not have the votes. there may tl may be an opening for a compromise by eliminating some deductions called a tax reform, if you will. >> i want to bring in jessica because i notice she's ready now from the east room, and there was another line that the president said using boehner's own words from speaking earlier today about how he was pleased that tax revenue was part of the negotiations, if you will, part of the talks really seizing on that politically and very publicly. what do you think is behind

that? >> i think they're both trying to signal publicly and to their own parties that they're willing to negotiate, that they're willing to make room for compromise. then they're also waiting to see, especially here at the white house -- they're waiting to see what the republicans first offer will be. the president did not change his position explicitly, and so they're still sticking by their guns for now. they're waiting to see if the republicans will adjust because of the election and exactly how, as they would put it, a firm that they're going to be on this rev new position. it's a little bit of wiggle room, but i'm not sure how much. one thing i would like to point out, suzanne, is that it is meaningful that for the president's very first statement after re-election in the white house he did not hold a press conference speaking to the washington press corps. he did not hold an address to congress.

what he did is he spoke to what they're calling middle class americans that gathered behind him, and i think this is symbolically important is that because during the campaign the president said his biggest mistake in the first term was not bringing regular americans into the white house to help make his case. he said once he did that during the payroll tax fight, he started winning his fights, and i think it's meaningful that he is starting his second term by trying to enlist regular people in his battles and he is making his first speech or his first statement with regular people behind him speaking as if he is talking directly to the people and not to washington. i think this is something you'll see more from them in the second term presidency. >> taking a page from the campaign and literally using them as a back drop. jess, thanks. want to bring in christine romans. christine, what does this mean for the average taxpayer when you listen to the president and his plan? >> you know, what they want to avoid here the president wants to avoid tax rates for everyone going up, and when you look at the tax policies that are, you

know, a tax watching group think saur your taxes are going to go up if you go over the fiscal cliff. now, personally, no one expects we're going to go over the fiscal cliff for the whole year. the question is do they do something by the end of the year to a short-term plan, to push the can six months down the road? do they do a grand bargain, or go off the fiscal cliff for a few weeks, and then they somehow make some sort of a deal so there's a few weeks of pain for everyone. you know, my big concern about that and i know ali agrees if you go over the fiscal cliff even for a few weeks or even a few days, i -- no one knows how the markets would react and how international investors would react, and i think -- >> remember lehman brothers? everybody thought that was going to work out fine, and it crushed the global economy, so this business about how it's okay, it's not okay. and, you know, suzanne, they're -- i think wolf makes a good point. the president didn't outline that we've got to go from 35% to 39%, but maybe there's a 37% or

something there. john boehner's discussion that we'll be okay by increase in tax revenues -- not tax rates, tax revenues, he is basing that on an increase in growth. economic growth is at 2%. this only hurts it. we are not getting 2%, 3% growth. smoke and mirrors. either you're accepting tabs increases or not. long-term tax reform is not going to get done between now and december 31st. like jessica just pointed out, the president needs to attach this to real people. clearly, as the election showed, the mass of americans are not going to go out and support the very wealthy not paying more taxes. this is -- we have to be careful. in the next few months we're -- in the next few weeks we're going to hear smoke and mirrors. >> already identify put forth a detailed plan that allows us to

make these investments while reducing our deficit by $4 trillion over the next decade. i want to be clear. i'm not wedded to every detail of my plan. i'm open to compromise. i'm open to new ideas. i'm committed to solving our fiscal challenge. but i refuse to accept any approach that isn't balanced. >> i want to bring in gloria, and gloria, first of all, i want you to react and tell me what you think that compromise and new ideas he is looking for, and, secondly, is one of those ideas -- could it be actually changing the definition of rich americans? we've talked about the more than $250,000 group. could that shift in any way? could that be part of the negotiations he is referring to? >> sure. that's a possibility that's been raised before, that you redefine up, that instead of wealthy being $250,000, maybe it's $1 million. what i'm hearing here and

senator schumer of new york mentioned this a bit as i mentioned earlier today, is that they're hung up on sort of the 35% rate. if they didn't take that back to what it was during the clinton years, they said, what if we raised the rates on the wealthy, the equivalent of raising it by tax reform, which means that the wealthy would get fewer deductions or we would cap their deductions, which, by the way, was a proposal that mitt romney suggested when he was running for the presidency, is that something that the white house could buy and republicans could buy? i've been communicating with leadership aides on both sides of the aisle on the hill, and from the republican point of view doing that in terms of tax reform would work. whether that's a problem for liberal democrats and the president himself remains to be seen. what we saw today was everybody

putting their cards out on the table before they go into the room to talk, and it's a good sign that they're going into the room to talk immediately that, they're not waiting a couple of weeks and they all understand it is in their self-interest to get something done, and in my experience that's when congress actually moves when they're up against the wall and they decided they've got to do it for self-preservation, and i think they know they have to do that this time. >> they have to get something done, and that's what the american people want. get something done, and get it done as soon as possible. thank you very much. of course, gloria, wolf, ali, christine. more after the break, but we are still watching another story. that is thousands of people who are fighting to save their homes after superstorm sandy. the emotional clean-up effort that is now underway. >> storm friday morning. friday morning i said i couldn't take anymore because they turned our gas off. when they turned the gas off, that was the end for me.

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city leaders in long island towns hit hard by sandy say they're fed up with the slow response to the disaster, and they're not going to take it anymore. more than 172,000 area residents still don't have power. more than 11 days after sandy hit. >> this is a crisis of epic proportions. this is a natural disaster. we are here as one community together to send a message. we've had enough. >> pole tellingses directed

their anger at the long island power authority. now, the company says it has more than 8,000 linemen and tree trimming crews making progress. they are just now returning to see their homes, the de station that this storm left behind. cnn's susan candiotti caught up with one couple as they toured their flooded house. >> reporter: with sandy's storm clouds gathering, sue evacuated, but over her objections, husband bill stayed behind. it was traumatizing. >> road out the storm until friday morning. friday morning i said i couldn't take anymore because they turned our gas off. when they turned the gas off, that was the end for me. i told my wife i would walk across a bridge if i had to but i was getting off. >> arm with the police pass, the retired new jersey fire chief married to wife sue for 20 years, allowed others back on

pelican island for a few hours to take stock of the devastation. >> they -- everybody is just broken down. >> that's my boat. stoo this is his boat. >> ripped from a lift behind the house, the storm surge swept his boat into the street inside the house they get a look at breathtaking damage. sue for the very first time. >> oh mishgs god. >> this house was spotless. >> marks on the ceiling show how high waves got inside. >> the water was up over my knees. i thought i might be able to save something, and i put the chairs up on the top of the table. didn't do any good. >> reporter: as things got even worse, bill retreated upstairs to the couple's bedroom overlooking the bay and huddled with his retriever blink.

>> i've never been so scared if my life. >> reporter: their dream retirement home in sham bells, but sue is grateful she didn't lose bill. >> the houses is stones and bricks and windows. i thought i lost him, and would have been -- losing him would have deaf stated me. i wouldn't have known how i would have gone on if i would have lost him. >> come down here and expect the rest of your life to be calm and peace, and in one fail swoop everything washed away. >> even knowing the danger of riding out a storm, he stayed behind with the hope of salvaging something meaningful, something valuable, but as a former fire chief, he recognizes nothing is worth that kind of risk. suzanne candiotti, cnn, pelican island, new jersey. >> some sandy victims are just now returning to their homes to

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we have one more election update. washington state voters have passed a ballot making same-sex marriage legal. after nearly two days of counting voting broke down this way. 53% said yes to the measure, while 47% said no. voters in maine and maryland also approve similar measures in tuesday's election. lawmakers hope to get more answers about the attack the u.s. embassy in benghazi. senior intelligence, state department, fbi officials, all have been appearing before congress next week as hearings on this armed assault resume. the chairman of the panel maintains that the u.s. knew early on that the september 11th attack was not a spontaneous demonstration prompted by the notorious anti-muslim video. four people were killed that day, including u.s. ambassador chris stevens. his sister spoke to cnn last

night. >> he recognized fully the dangers, and not only but previously in israel and time served, and he was very well prepared by the state department to minimize the danger as much as possible. >> i don't think all the extra investigations -- >> both the fbi and the state department are independently investigating the attack. iran defends its right to confront that its words any invasion after an iranian jet fires on u.s. drones is it considered an act of war? ? questions?

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president obama says it is time to get back to work to prevent the country from going over the so-called fiscal cliff. in a speech just moments ago the president said that everybody's taxes will go up unless congress comes up with an agreement to prevent the financial crisis. it includes massive automatic spending cuts and tax hikes for 90% of americans. the president stood by his position that revenue has to be part of the equation. >> you can't just cut our way to prosperity. we're serious about reducing the deficit. we have to combine spending cuts with revenue. that means asking the wealthiest americans to pay a little more in taxes. >> the president has now invited congressional leaders from both parties to the white house next

week to take about it all. >> deet fint reaction from iran on its attack against an unmanned u.s. drone. it happened last thursday, the persian gulf. the pentagon says two iranian fighter jets fired on the u.s. predator surveillance drone. the drone was not hit. his return to his base. the iranian news agency quotes the top iranian news official saying his country took and this is in their words decisive action against the drone. another iranian general tells the news agency if any foreign planes trying to enter our country's space, our armed forces will confront it. >> the international airspace east of kuwait. the u.s. has launched now a formal protest with iran. barbara starr broke the story. she's joining live on the pentagon. barbara, first of all, what do we know? how is this different than what we've seen before? >> well, this, suzanne, is the first time we are told by the pentagon that iran has actually

fired at a u.s. drone in an attempt to apparently take it down. it's not happened before. drones have crashed inside of iran. this is the first time iran has taken military action. the belief it was iran's revolutionary guard core that was flying those planes, that's the most aggressive element of the iranian military. it's the one that causes the u.s. the most concern. they have caused trouble before on the water. they are called the cowboy force by some members. the u.s. doesn't think the iranian military in general is coming after it, but this revolutionary guard core force and what they did last thursday shooting at a u.s. drone a metro of great concern, especially in that area of the oil shipping lanes. >> tell us a little bit about the administration's response here. i understand that they didn't reveal the incident until after you actually reported on this yesterday, breaking this news story. is there any indication the pentagon intentionally tried to keep this under wraps until

after the election? >> well, you know, that's the question. certainly they didn't want to see some dust-up with iran over the front pages. we're told officially that the pentagon didn't talk about it because it was a classified mission by this drone, although they also say it was a routine survey once mission. the surveillance really over the gulf is of iranian military assets, ships, planes, missile batteries, keeping ab eye on everything iran is doing out in that area, so it is classified, and they say that they didn't respond to it because it was -- they didn't talk about it because it was classified, but they did respond after we asked about it. >> and, barbara, this is not the fifth we've seen aggress from iran. we know that iranian boats have approached the u.s. military ships at a very high speed in the strait of hormuz in the persian gulf. the latest incident essentially wondering has the u.s. wondering if iran intends to disrupt this crucial oil shipping lanes in

the gulf. what is the greatest fear? >> it really does all come back to that, suzanne. it's the oil shipping lanes. this is very busy. water space very busy. airspace, both commercial and military assets constantly moving through this area. big concern is that iran, if pushed to the wall, will decide to take aggressive military action, and the fear is that they will mine the waters of the persian gulf. of course, disrupting international oil traffic, and, again, that's why you see stepped up u.s. military surveillance, keeping an eye at all times on what iran may be doing. suzanne. >> all right. barbara starr, xlept reporting, as always. it was, as you can imagine, a very emotional day in court as a former congresswoman gabby giffords confronting her shooter. her husband mark kelly on what's ahead. >> our long-term plan is to look forward and try to make the best out of every day and not think back to january 8th and what

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inlits tax hikes for 90% of americans. he says the revenue has to be part of the uatiequation.

he urged them to extend tax cuts. >> the effort people are looking for is cooperation, consensus, common sense most of all they want action. i intend to deliver for them in any second term. i expect to find willing partners in both parties to make that happen. so let's get to work. >> president has invited congressional leaders from both parties to the white house next week for discussions. we now know who's been invited. it is not surprising, harry reid, mitch mcconnell, house speaker john boehner and house minority leader nancy pelosi. the husband of gabrielle giffords says their long-term plan is to move forward and try not to look back at the day that giffords was shot. on january 8, 2011, loughner opened fire at a rally for gabrielle giffords. he shot her in the head at point-blank range. 12 others were wounded and six killed. yesterday a judge sentenced

loughner to life in prison without the possible of parole. gabrielle giffords sat through the sentencing with her husband mark kelly by her side. kelly talked to our piers morgan about what it was like to be in that courtroom. >> it was certainly a little stressful. it was tense. especially when he walked in the room. when he responded to the judge. after a while i got to settle down a bit but just sitting there for all of the other victim impact statements is really a tough thing. you know, gabby said afterwards for her the biggest emotion was just sadness to hear story after story of what the impact of this horrible day had on people. it was really difficult. >> as kelly mentioned, some of the victims spoke in court directing their words at loughner. susan hileman said this, if you point ed a weapon at me and shot me. over the last several months, i wanted to take you by the

shoulder and shake you and scream at you. it's an awful situation and it's all because of you. >> mary reed who was among the wounded blamed loughner for introducing her children to something sinister and evil. she said my children will forever remember the moments of people when they died, the smell of blood everywhere. loughner pleaded guilty to 19 charges in exchange for a life sentence. he had been facing more than 50 federal charges. a group of navy s.e.a.l.s are charged with giving up classified information to a video game company. seven members of the navy's s.e.a.l. team six reportedly worked as paid consultants on this video game without i permission. it is called medal of honor war fighter. the members of the elite special forces unit have been punished with their pay docked. medal of honor is in stores noep now and is getting attention for looking so realistic. public awareness campaign in

south australia is certainly feting folk's attention. this is a wrecked car. it is actually 17 painted men and women stacked on top of each other. part of an awareness campaign to try to get drivers to slow down. the underlying message is when cars crash it is really people who pay the price. with president obama re-elected, what does it mean for health care? are there any changes we can expect? dr. sanjay gupta will break it down. [ male announcer ] your mouth is cleanest after the dentist.

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cnn medical correspondent sanjay gupta has more on what you need to know. >> reporter: one of the ways to think about this is almost more of insurance reform even than health care reform. i will read you some things you will see go in to effect the next couple of years. a lot of them are designed to protect consumers and patients. january 1st, 2014, you can't be charged a higher premium for being sick. that's a big one. obviously a lot of people focused on that. can't be denied coverage due to preexisting conditions and no dollar limits on health benefits. a lot of people have been unable to purchase health care insurance because they have a pre-existing condition can. this will help them. there's also a lot of people that have bought health care insurance after being sick and paid a lot of money to get that insurance. this is going to offer relief for them, as well. there's something else you may have heard about. these health insurance exchanges some if you are someone who dunn have insurance or if you are going to buy it on your own, you can go to an exchange in your

state where various insurance companies are essentially competing for your business. they hope that that competition will help to drive down costs. or if you work for a small business, for example, that doesn't offer health care insurance, this is another option. part of what makes this all work is having a mandate in place. right now there's 16 states that say they will do this. three more say they are looking in to it. that leaves a lot of states up in the air about this. by november 16th, they have to decide whether or not they are going to do it. if they don't, the federal government comes in and does it for those states. if you don't buy insurance, if you can afford to buy it and don't buy it, there is a penalty. a lot of people have asked how significant is it? this may surprise you. for the first year, for example, it is $95 or 1% of your income. may not sound like a lot but by 2016 it goes up to $695 or 2.5% of your income, which ever is